Do I Need a Trust?
How do you know if you need a trust? This question is even harder to answer when you consider the amount of bad advice people give. To help you navigate this question, this article discusses two common but unhelpful considerations and then a few less common but more helpful considerations.
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Blockchain & Your Estate Plan
With an increasing number of clients who own blockchain assets, it is important to effectively integrate these assets into estate planning strategies and documents. If you have blockchain assets, here are some basic things that need to be part of your estate plan.
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(UPDATED) Ctrl + Z: How to Modify an Irrevocable Trust
You've got an irrevocable trust, but circumstances have changed. Maybe family dynamics are radically different from when you created the trust. Maybe you want to change trustees. Maybe the law has changed in ways that mean you no longer need an irrevocable trust, or the trust as drafted won't accomplish your original purpose.
Who's the New Guy?
Most of the couples we work with share a concern that is often overlooked in estate planning. What happens when one spouse dies before the other? How can we be sure that the deceased spouse's assets remain available only for the surviving spouse and children?
Do You Pass the Goat Test?
One of the most overlooked provisions in living trusts and financial and medical powers of attorney is how to determine your incapacity. This is a crucial issue in anyone's estate plan, but it's usually ignored or treated like an afterthought.
Retirement Trusts after the SECURE Act
Tallgrass Estate Planning Attorney Riley Kern gave a continuing education presentation to the Oklahoma Bar Association's Estate Planning, Probate, and Trust Section on May 7. While the presentation was no intended for an audience of non-lawyers, we recognize that there are other attorneys who visit our site and might benefit from this information, and there are many non-lawyers who want to learn more than just the basics about the law.
Gift, Loan, or Advance: What's the Difference?
You've created an estate plan through a will or a trust, but you may still intend to make distributions to your loved ones during your lifetime. You may not have considered it, but these lifetime distributions can create some problems later on. To save time, money, and prevent suspicion, it is important that you clarify now whether these distributions are gifts, loans, or advancements.
Low Interest: The Right Time for Advanced Trust Planning
The IRS has announced new Section 7520 rates, the rates that are used to determine the values of certain important gifting and estate planning techniques, such as charitable gifts, private annuities, and transfers to charitable trusts and intentionally defective trusts. These planning tools are critical for reducing or eliminating estate taxes and creating asset protection during the grantor's lifetime.
Medicaid Without Poverty
A common goal in estate planning, especially for people who are retired or who have a chronic illness, is the protection of assets in case they need long-term care. It's common knowledge that qualification for Medicaid benefits usually requires the recipient to be impoverished. It is less common knowledge, however, that you can protect many of your assets and still qualify for Medicaid if you plan ahead.
FAQ: Revocable Trust vs Irrevocable Trust
One of the more frequently asked questions we get is about the difference between revocable and irrevocable trusts. In this post, I answer that question as simply as I know how and suggest why someone might choose one over the other. As always, let us know if you have any questions.
How to Create 176 Trust Fund Tigers; or, What is a Pet Trust?
Whether you are the Tiger King or a "crazy cat lady," whether you have fields full of cattle or a backyard chicken coop, whether you breed pedigreed dogs or rescue mutts, or whether you keep snakes or tarantulas or other creepy-crawlies, you need to make provision for the care of your animals during your incapacity and after your death.
The Family Bank: Protect Assets, Reduce Taxes, and Create Generational Wealth
As we use the term, a "family bank" is an estate planning tool that allows you to remove assets from your taxable estate, to protect those assets from liabilities, and to preserve those assets over multiple generations while training each successive generation on important principles of financial management.
Planning after SECURE: 5 ways to make the most of it
Here's the punchline: Before the SECURE Act, non-spouse beneficiaries, like your kids, could inherit IRAs and 401(k)s and "stretch" out the required minimum distributions over their own life expectancy. This helped minimize the income tax consequences to the beneficiaries and allowed for continued tax-deferred growth inside of those accounts.
On Building or Burning Bridges
From time to time, we work with a "perfect" family - partners are in love and stable, kids all get along, everyone is healthy and financially responsible. But most of the time, somewhere in the family, there is tension, suspicion, addiction, financial liabilities, or any number of other relational, financial, or physical causes for concerns.
Your Mix: Why Your Blended Family Needs a Plan
Blended families have many of the same estate planning problems to solve as other types of families, but they also have a few problems unique to their situation. Typically, two partners come to a new marriage with separate assets and liabilities - real estate, inheritance (or anticipated inheritance), retirement savings, life insurance, credit card debt, student loans, ongoing financial obligations from divorce decrees, and on and on.
How to Talk to Your Estate Planning Attorney
Whenever a new client schedules their first consultation with us, they ask if there is are any documents, financial statements, or other materials they need to bring, or if we require potential clients to first fill out a complicated intake form. This is a reasonable question. We try our best to make our initial estate planning consultation as simple as possible, but we understand it can still seem daunting, especially if you are starting from scratch.
What do you owe the next generation?
Many of our clients feel that while leaving an inheritance to their children or grandchildren might be nice, they feel no sense of obligation to do so. Others feel it is their responsibility to leave at least some of their assets to the next generation as a "leg up" in the world.
Corporate Trustee: When and Why You Need a Professional
In most of our consultations about trusts, we eventually explore whether the client may benefit from integrating a corporate trustee into their plans. We look at family dynamics, financial advisers, and types of assets, among other things. We also consider needs that may arise during a client's disability - during which time a Will does absolutely no good at all - and whether there are new and unique needs that arise after a client's death.
Care Comes in Many Forms
If you are a caregiver for a loved one, you are making an amazing difference in that person's life. You are offering more of your self, your strength, your emotions, and your time than the rest of us can imagine. And while you are giving so much out of love, you are also likely living with a great deal of anxiety, stress, loneliness, isolation, and irritation.
The Great Table Giveaway!
A little over 3 years ago, when we started down this beautiful, hopeful, uncertain path, we didn’t know how our informal, admittedly non-traditional, the approach would be received. We hoped that if we knew our stuff, cared about our clients, and stayed true to our vision, that we’d be able to do something helpful, maybe even special. And people, hundreds of clients, and over *1000* Facebook likes later, here we are!
"I don't have much." Well then, planning is even more important.
Large or small, castle or tiny house, you have an Estate. The size of your estate may affect your goals and which tools will best accomplish your goals, but everyone needs to do some form of planning for their estate. Sometimes when we say this to folks they respond “but I don’t have a lot of assets.” We’ve actually found that those with a relatively “small” estate often derive the greatest comparative value from estate planning.
Probate: Now what?
It’s likely our loved one took the most common path – the one that led to probate. Maybe they left a will or communicated their wishes at the last Thanksgiving dinner. But, they are gone now. And here you are, in the land of probate. We’ve been here too. If you're like many people, you feel lost and without a map. So here are a few things to help you know what to expect.
The Real Reason People Don't Plan (hint: blame the lawyers)
Estate planning is unlike other areas of law - like criminal defense, family law, or personal injury - which demand immediate action because of a present crisis. Estate planning is about getting out ahead of a crisis, making things as smooth as possible down the road. Because of that, it's easy for all of us to procrastinate.
We Just Want You To Be Happy: Getting the Right Counsel
We get it: We're not right for everyone. We are an unorthodox group of attorneys who work in a non-traditional way, and many people would prefer a more conventional approach. Not often, but it happens. That's totally fine.
Legendary Voice, Common Problems
This month, we lost one of the Greats. Thankfully, we and future generations will be able to dance and fall in love to her songs for decades - hopefully centuries - to come. Nothing but Respect for the Queen.By now, you may have heard that Aretha Franklin died "intestate," that is, without creating a will or other estate plan.
What even IS estate planning?
A little while ago we posted an explainer of what an “estate” even is. So, now that we’ve all read that, the next big question is, “What is estate planning?” Most people think of estate planning as “what happens to my stuff when I die.” But it starts far, far earlier than that.
Estate Planning Rewrites: Roger Rabbit
As a refresher for those who haven’t seen Who Framed Roger Rabbit? in a while: Part of Los Angeles is a cartoon animation called Toontown, filled with cartoon actors (“Toons”) who star in real live-action films and live amongst real people. Toontown is owned by businessman Marvin Acme, who is tragically murdered, and Roger Rabbit—one of the biggest Toons in the biz—is the prime suspect.
Creating Your Family Bank
Everyone needs estate planning. Everyone. Every. One. But not everyone needs the same estate planning. There are some tools that everyone should have - like a power of attorney and advance directive. There are some tools that many people should have - like a last will and testament and revocable living trust. And then there are those more specialized tools that fewer people need; yet, for those families that need them, they can make a critical and positive difference for many future generations.
Hello. We're Tallgrass. Nice to meet you.
Please allow us to introduce ourselves. We are a team of attorneys who imagine a different way to work and help clients. We are a work in progress, just like you and your family. And here are a few things that drive how we work and where we're headed.
More Than One Way to Cover Your Assets
Like everything else in estate planning, asset protection isn't a one-size-fits-all proposition. What type of protection you need depends entirely on the type of asset you want to protect and the source of the potential threat - creditors, lawsuits, divorcing spouses, financial predators, remarriages, long-term care costs, income taxes, estate taxes, etc.
Two Ways. Choose Wisely.
Here's the #1 reason people do estate planning: to avoid lengthy and expensive court proceedings, like probate and guardianship. There are many other reasons, of course, but avoiding the time and cost of courts is foundational for the vast majority of our clients. In this post, we want to describe the two primary ways of doing just that, and why you might prefer one over the other.
Estate Planning for Farmers
Deciding how to distribute or divide the family farm, ranch, or land is not an easy task. Perhaps not all of your children want the farm, determining value is tricky, there are loan and subsidy programs to preserve, there are tax complications, and there are asset protection concerns.
Stop Caring So Much About the Joneses
A few months ago, my wife and I noticed a crack forming in the concrete floor underneath the carpet in our daughter's bedroom. What started as mild concern grew into real anxiety as we felt the crack grow larger within a few short days. We called a structural engineer to check the integrity of the house, a plumber to check for slab leaks, and a few different specialists to get estimates on repairs.
The Basics: What IS an estate?
We encounter a lot of misunderstandings and misinformation in our practice. One of the most frequent is also the most basic: What is your “estate”? If you’re not a billionaire real estate mogul or an heiress to a hotel fortune or Rich Uncle Pennybags (aka "Monopoly Man"), do you even have an estate?
How to Adult (at least a little)
"Adulting" is one of my favorite neologisms, even though it's been criticized harshly by some. If you're new to the word, you've still probably already figured out what it means. It's just a playful way to describe doing typically "adult" things that no one particularly likes to do but everyone has to - doing laundry instead of just buying more underwear, eating your vegetables instead of pizza rolls, actually going to the doctor, paying your taxes, changing a tire, etc, etc, etc. You get the gist.
Addiction: How Your Estate Plan Can Help
If someone you love struggles with substance abuse or other forms of addiction, it is essential that you discuss the issue with your estate planning attorney and find solutions that give you peace of mind and, when possible, provide responsible assistance to those suffering from addiction.
Myth: I'm single, so I don't need an estate plan.
People have a lot of reasons to avoid estate planning, like, they don't want to budget for it, it seems complicated, they believe (wrongly) that everything will work out without a plan, or they just don't like thinking about death, disability, family issues, and money. One frequent reason comes from single (or unmarried but coupled) people who think planning is only necessary for married people. (Similarly, married people without children assume planning is only necessary if they have children.)
So, you're having a baby.
Was it planned or a surprise? Is it your first or your last? Are you having a girl or a boy? No matter what, I can tell you one thing. You're having a responsibility. I know you know that. I know you're reading or have already read all of the latest parenting books and mommy blogs (or avoiding them like the plague).
How to Host a Mortality Party. Yes, We're Serious.
A mortality party is a way to talk about planning for disability and death that makes the conversation less intimidating. Here's what happens:An individual or couple invites a group of people (more about that below) to their home or church or anywhere else that feels comfortable for them and their group.
Your Plan: Wisdom and Generosity
Less than a month until the filing deadline. Some of you show-offs have already filed your returns, and others (like me) are saying you'll get around to it "tomorrow." Not everyone will receive a refund, of course, but those who do should have a plan for how to use it.
The Plan: A Blueprint for Getting Started
Just because you're young and broke doesn't mean you don't need to plan for the unexpected. In fact, BECAUSE you are young a broke you may have to solve a few problems that people with families and who are more established in their careers don't have to think as much about.
To-Do List: 1) Start a Business. 2) ...?
Speaking from personal experience, I can say that owning a business is one of the most rewarding and stressful things in the world. The risks, challenges, successes, and failures are a roller coaster, to be sure, but it is so gratifying to see your vision become reality. With all of the imagination and sweat that goes into your business, you need a plan - not just a business plan, but particular parts of an estate plan.
Blended: Two Important Considerations for "Step" Family Estate Planning
Roughly a third to half of the families we work with are "blended," meaning some or all of the children - whether minors or adults - came into the new family with the spouses. Some families blend easily; others, not so much. Regardless, when it comes to estate planning, blended families have a few special considerations. If you are in a blended family, here are two things you need to discuss with your spouse and attorney.
Procrastination: It's Not a Matter of Time
If you are not someone who struggles with procrastination, congratulations. If you are like me, however, there always seems to be a list of things you just can't bring yourself to get around to. You tell yourself you'll do it tomorrow, because tomorrow, magically, you will "feel like it" or you will have time or the stars will otherwise align.
Resolution: 4 Reasons Why This is the Year We Do Our Estate Plan
A good estate plan clarifies your wishes and values. If you are temporarily or permanently disabled, who should be in charge of medical decisions about you? What types of decisions should they make? And who should be in charge of your finances? How should they use your money? Should they give to your church? Should they take care of another family member?
Do your retirement and estate plans play well together?
If you're saving for retirement, you've likely got an IRA, 401k, or some other type of "qualified retirement plan." In these types of plans, your money grows without incurring capital gains taxes, and, depending on the specific account, your contributions may not be taxed until you withdraw them (after a specific age).
Digital Estate Planning
Your digital estate is everything you have a right to that exists in digital form. This includes your usernames and passwords for all of your social media accounts, like Facebook, Instagram, and Twitter. It also includes your online access to your bank accounts, brokerage accounts, and other financial records. AND it even includes the digital versions of important personal, legal, and administrative documents that might also exist as hard copies.
The Basics: What's a "trust" and what does it do for me?
A thorough estate plan includes several important documents, but at the heart of the plan is either a trust or a will. Helping people understand the distinction between a trust and a will is one of the most important parts of my conversations with clients. Most people don't know the difference, or, more importantly, why the difference matters. But if you will invest 30 seconds skimming this post, you will know more about trusts than just about everyone else you meet.
Misconceptions: "I don't have much, so I don't need an estate plan."
Estate planning is not about how much stuff you have. It's just not. And yet, the sentiment "We don't have much" is a common response when the topic comes up. I want to take just a few paragraphs to let you know why you need an estate plan, whether you have millions or nothing more than a mortgage and a life insurance policy (or less).
